ITC & tax rate on Canteen Services

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Asst. Manager Accounts
31 Points Posted on 04 September 2020
Dear all,
we constructed building and we are a contractor. actually we have third party canteen services in our construction site for labour under subsidise.
now service provided charged 18% of GST and we are not availed input tax credit as it is under block credit services.
please help can you take ITC?
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On 04 September 2020 at 00:05 Report
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Quick Summary
A contractor who has built a site and uses a third-party canteen service for their labourers is facing an 18% GST charge. They are unable to claim Input Tax Credit (ITC) due to block credit rules. The contractor is seeking clarification on whether ITC is permissible, especially if there's a legal obligation to provide food, and if the tax rate could be reduced to 5%.

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T
405 Points Posted on 04 September 2020
If there is legal compulsion that u should provide food to labour then only itc is allowed
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On 04 September 2020 at 19:52
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Asst. Manager Accounts
31 Points Posted on 04 September 2020
No isn't, now as tax part is our cost so can it be 5% instead of 18%
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On 04 September 2020 at 20:07

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